Small Business Investment Companies

 

To establish privately owned and managed Small Business Investment Companies (SBICs), which are licensed and regulated by the U.S. Small Business Administration (SBA), and to issue debt to licensed SBICs that may provide private equity capital and long term loan funds to small businesses and provide advisory services to small businesses in which they invest.

Active 59.011 Small Business Administration F - Guaranteed/Insured Loans Fiscal Year 2019 From the inception of the SBIC program in 1958, SBICs have invested over $103 billion in approximately 184,135 financings to small businesses. In Fiscal Year 2019, 299 licensed and operating SBICs invested $5.86 billion in 1,191 small businesses.
Fiscal Year 2022 In FY 2022, the SBIC Program had over $38 billion in private capital, outstanding SBA-guaranteed debenture leverage, and SBA leverage commitments—the highest amount of combined capital under management in the program’s history. For more information about SBA accomplishments, access the SBA Congressional Budget Justification and Annual Performance Report: https://www.sba.gov/document/report-congressional-budget-justification-annual-performance-report Small Business Investment Act of 1958, Title III (15 U.S.C. 681 et seq.), Public Law 85-699, as amended Any chartered small business investment company having private capital of not less than $5 million, having qualified management, giving evidence of sound operation, and establishing the need for SBIC financing in the geographic area in which the applicant proposes to operate. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-4. Individual businesses (single proprietorship, partnership or corporation) which satisfy the established criteria of a small business. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-6. A small business investment company must be chartered as a corporation, limited partnership (with individuals, corporation, partnership, or limited liability company as general partner), or limited liability company. Determination is made as to need in area, general business reputation and character of proposed owners and management and probability of successful operations. All loans to, or investments in, small concerns shall be of such sound value as reasonable to assure repayment. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-4. Preapplication coordination is required. Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. SBIC applicants are strongly encouraged to participate in a pre-screening process. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-8. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Request information and appropriate forms from SBA's Office of Investment and Innovation. Complete application requirements and submit with required application fee to SBA's Office of Investment and Innovation. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic. Applicant is notified by issuance of a license from SBA's Office of Investment and Innovation. Not applicable. Applying for an SBIC license is generally a three phase process and may take up to two years. In the second phase of the process, applicants are given 18 months to raise the private capital needed to be viable and submit required information for licensing. For more information on the licensing process, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic. Proponents may reapply at any time. Not applicable. Investment funds licensed as SBICs must demonstrate ability to generate enough revenue to pay their SBIC debt obligations on a timely basis and typically have four basic characteristics: 1) Experienced management team with team members having complementary skills and a history of working with each other; 2) Proven investment strategy with track records contain enough successful, income-generating investments to prove an ability to service SBA-guaranteed debt; 3) Track record of success with at least two team members' 10-year track records clearly showing success with investments analogous to the ones proposed for the applicant SBIC; 4) Appealing fund structure that aligns the incentives of the SBIC's managers and investors. SBICs provide management and financial assistance on a continuing basis to eligible small business concerns in which they invest. Financial assistance is provided by making long-term loans to these small concerns, and/or by the purchase of debt or equity type securities issued by these firms. Emphasis is on providing assistance to the pioneering, innovating-type concerns developing new products, processes, and markets. Specialized investment companies (SSBICs) organized/licensed under former Section 301(d) of the authorizing statute must restrict eligibility to small concerns owned and operated by individuals whose participation in the free enterprise system has been hampered by social or economic disadvantages. Debentures are issued by leveraged SBICs and guaranteed by SBA for a term generally not to exceed ten years. SBICs may not self-deal, finance "big business," or invest over 10 percent of combined capital in any single small concern. Performance Reports: Information available at https://www.sba.gov/partners/sbics/operate-sbic#section-header-0. Annual audit by a certified public accountant and periodic on-site examinations by SBA personnel. For more information, please go to https://www.sba.gov/partners/sbics/operate-sbic. Current financial records, minutes of meetings of stockholders, general partners, directors, executive committees, and time spent and charges made for management consulting services performed must be maintained until such time as an SBIC license is surrendered. Statutory formula is not applicable to this assistance listing.

Matching is mandatory. Statutory formula is not applicable to this assistance listing. Matching Requirements: Additional information available at SBA's website at https://www.sba.gov/partners/sbics/forms-guides#section-header-2. Matching requirements are mandatory. MOE requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Additional information available at SBA's website at https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-8. https://www.sba.gov/partners/sbics/operate-sbic. See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. SBIC Director of Program Development
409 3rd Street, SW
6th Floor
Washington, DC, DC 20416 US
applySBIC@sba.gov
Phone: 202-205-7546 http://www.sba.gov/sbic 73-1154-0-1-376 (Guaranteed/Insured Loans) FY 22$3,881,890,000.00; FY 23 est $5,000,000,000.00; FY 24 est $6,000,000,000.00; - Information on the SBIC Program is available at https://www.sba.gov/document/report-sbic-program-state-state-financing-report-fy2016-fy2020 Additional information available on SBA's website at www.sba.gov/sbic. 13 CFR, Part 107. Fiscal Year 2020 For a current directory of licensed SBICs, please go to https://www.sba.gov/sbics.
Fiscal Year 2022 The SBA provides funding to qualified investment management firms with investment expertise in certain sectors, industries, and investment strategies. The SBIC program was created to address concerns regarding a deficiency in the capital markets for long-term funding for growth-oriented small businesses.